Re -submission coursework Essay Example | Topics and Well Written Essays - 1500 words

Re -submission coursework - Essay Example The courts are always bound by this principle; however, there is a possibility and exemptions when the courts can lift the corporation veil in order to reveal the true identity and character of the company under consideration. The main reason of this approach is that the law will seek to prevent a corporate organization from being misused or even abused (Prentice and Reisberg, 2011). In circumstances when the court is aware that the corporation is abusing its form, then the courts would rip off the corporate veil, and disregard the principles established by the House of Lords in Salomon vs. Salomon. On this basis, the assertions by Lord Denning in the case Little Woods Mail order, against Inland Revenue Commissioner is correct, and the courts have applied the principles established in this case, while lifting the corporate veil of companies whose cases are before the court. This paper critically looks at the concept of incorporation of the company, and its effects. It further on analyzes this concept of separate legal personality, and the principles contained in Salomon vs. Salomon (Prentice and Reisberg, 2011). This paper also relies on the 1985 companies act in supporting some of the facts identified in it. This paper also defines the concept of lifting the corporate veil, and instances when the courts can lift the corporate veil. This paper also has an analysis and evaluation section. This section is an analysis of the various concepts introduced into the paper. In meeting these objectives, this paper will use relevant case laws and authority. The conclusion of this paper is a summary of the various points addressed in it. The concept of incorporation of a company refers to the formation of new companies, that is given a legal benefit, and it is recognized as a personality under the law. The corporation under consideration can either be a business organization, a governmental institution, a sports club, a non-profit making organization, etc. A